MKTG 372 FINAL REGO EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Analysis of a PERT problem shows the estimated time for the critical path to be 108 days with a
variance of 64. There is a .90 probability that the project will be completed before approximately day:
- Answers 118
Economies of scale occur when a company is operating - Answers below its best operating level and
increases its output
Recall the example of four facilities (A,B,C, D) used in class for which we plotted the corresponding
total cost lines for break-even analysis. To plot the cost lines for break-even analysis one end of the
line is the y-intercept point. The other line point - Answers Is arbitrary but usually the expected
volume
Recall the example discussed in class of the restaurant owner who wanted to decide whether to
expand small or large. Solving a decision tree that involves maximizing profit (or payoff) includes
______________________. - Answers selecting the decision alternative with the highest expected
value
A location analysis has been narrowed down to two locations, A and B. The main factors in the
decision will be supply of raw materials, which has a weight of 50, and labor cost, which has a weight
of 50. The ratings for raw materials and labor are: for A, 3 and 4, respectively; for B, 5 and 3,
respectively. Using the factor rating method, the manager should ______________________.
A. reject both locationsB. choose location BC. choose location AD. be indifferent between these
locationsE. determine the capacity before deciding - Answers choose location B
Recall the graph that we used in class to illustrate the concept of economy of scale versus diseconomy
of scale.The cost per unit is $36.74 at the best operating level. When the output is higher, the unit
cost will be what? - Answers higher
Recall the example discussed in class of the bakery that specializes in custom cakes. The maximum
output rate that can be achieved by a facility under ideal conditions is _________________. -
Answers design capacity
Recall the graph used in class to illustrate the concepts of economy of scale versus diseconomy of
scale and best operating level. The best operating level is the volume of output that results in the
____________________. - Answers lowest average unit cost
If the costs (S and H) and demands (D) are the same, which of the following is not true with regard to
the EPQ model as compared to the EOQ model? - Answers Both models use the same formula to
compute annual holding cost.
In a periodic review inventory system, how many units are ordered? - Answers Target inventory level
- on hand balance
The formula for calculating safety stock when an estimate of demand during lead time and its
standard deviation are known is? - Answers SS = z*σ(dl)
Recall the graph of the inventory cost functions. In general, as the order size increases - Answers
ordering costs decrease and carrying costs increase.
Under a periodic review system, enough inventory must be carried to protect against stockout for the
___________. - Answers replenishment lead time plus the review period
What are the two major decisions to be made when using the periodic review system? - Answers the
time between orders and the target inventory level
A service level of 95% means there is a 0.95 probability - Answers that demand will be met during the
lead time
The closer the smoothing constant (alpha) is to 1.0 - Answers the greater the reaction to the most
recent demand
What does the linear regression line do? - Answers Minimizes sum of squared errors
What does average number of jobs in the system measure? - Answers WIP inventory
A code of ethics especially for project managers - Answers has been established by the Project
Management Institute.
Ethical issues that may arise in projects large and small include: - Answers A. gifts from contractors.
B. exaggerated expense reports
C. compromised quality standards to meet bonuses or avoid penalties related to schedules
D. pressure to mask delays with false status reports.
E. all of the above
E is the answer!!!!
Analysis of a PERT problem shows the estimated time for the critical path to be 108 days with a
variance of 64. There is a .90 probability that the project will be completed before approximately day:
- Answers 118
Economies of scale occur when a company is operating - Answers below its best operating level and
increases its output
Recall the example of four facilities (A,B,C, D) used in class for which we plotted the corresponding
total cost lines for break-even analysis. To plot the cost lines for break-even analysis one end of the
line is the y-intercept point. The other line point - Answers Is arbitrary but usually the expected
volume
Recall the example discussed in class of the restaurant owner who wanted to decide whether to
expand small or large. Solving a decision tree that involves maximizing profit (or payoff) includes
______________________. - Answers selecting the decision alternative with the highest expected
value
A location analysis has been narrowed down to two locations, A and B. The main factors in the
decision will be supply of raw materials, which has a weight of 50, and labor cost, which has a weight
of 50. The ratings for raw materials and labor are: for A, 3 and 4, respectively; for B, 5 and 3,
respectively. Using the factor rating method, the manager should ______________________.
A. reject both locationsB. choose location BC. choose location AD. be indifferent between these
locationsE. determine the capacity before deciding - Answers choose location B
Recall the graph that we used in class to illustrate the concept of economy of scale versus diseconomy
of scale.The cost per unit is $36.74 at the best operating level. When the output is higher, the unit
cost will be what? - Answers higher
Recall the example discussed in class of the bakery that specializes in custom cakes. The maximum
output rate that can be achieved by a facility under ideal conditions is _________________. -
Answers design capacity
Recall the graph used in class to illustrate the concepts of economy of scale versus diseconomy of
scale and best operating level. The best operating level is the volume of output that results in the
____________________. - Answers lowest average unit cost
If the costs (S and H) and demands (D) are the same, which of the following is not true with regard to
the EPQ model as compared to the EOQ model? - Answers Both models use the same formula to
compute annual holding cost.
In a periodic review inventory system, how many units are ordered? - Answers Target inventory level
- on hand balance
The formula for calculating safety stock when an estimate of demand during lead time and its
standard deviation are known is? - Answers SS = z*σ(dl)
Recall the graph of the inventory cost functions. In general, as the order size increases - Answers
ordering costs decrease and carrying costs increase.
Under a periodic review system, enough inventory must be carried to protect against stockout for the
___________. - Answers replenishment lead time plus the review period
What are the two major decisions to be made when using the periodic review system? - Answers the
time between orders and the target inventory level
A service level of 95% means there is a 0.95 probability - Answers that demand will be met during the
lead time
The closer the smoothing constant (alpha) is to 1.0 - Answers the greater the reaction to the most
recent demand
What does the linear regression line do? - Answers Minimizes sum of squared errors
What does average number of jobs in the system measure? - Answers WIP inventory
A code of ethics especially for project managers - Answers has been established by the Project
Management Institute.
Ethical issues that may arise in projects large and small include: - Answers A. gifts from contractors.
B. exaggerated expense reports
C. compromised quality standards to meet bonuses or avoid penalties related to schedules
D. pressure to mask delays with false status reports.
E. all of the above
E is the answer!!!!
